Chapter 11 - Property Management & the Nonresidential/Residential Landlord & Tenants Act

Question 1

What are property manager’s responsibilities and goals?

Answer 1

Handling details of rent, leasing, maintenance and repair, and record keeping

Dual goal to maximize rental income while preserving the property’s worth

Also, must safeguard civil rights, health, and safety of tenants

Must be in compliance w/ OK Non-Resi and Resi Landlord and Tenants Acts - if compensated, must have RE license

Question 2

Property management agreements include:

Answer 2

• names of parties
• duties and responsibilities or manager and scope of authority
• accurate property description
• reporting requirements
• brokerage fee
• handling of funds and payments to 3rd parties
• handling of security deposits and prepaid rents
• effective and termination date
• conditions for termination of agreement
• signatures

Question 3

What is the definition of nonresidential rental property?

Answer 3

Any land or building which is rented or leased other than for residential purposes and rental agreement isn’t regulated under the provisions of the OK Residential Landlord Tenant Act (OKRLTA)

Question 4

What happens to abandoned, surrendered, or evicted tenant personal property?

Answer 4

• Landlord my take possession 10 days after tenant receives personal service notice or 15 days after notice is mailed, whichever is latest
• Landlord can dispose of it (no value) or sell it
• Payment by tenant of outstanding rent, damages, storage fees, court costs, and attorney fees are a prerequisite to returning personal property

Personal property should be stored on premises or commercial storage (can make tenant pay)

Question 5

Proceeds from sale or disposition of personal property should be applied by the landlor in the following order:

Answer 5

1) reasonable expenses of taking, holding, preparing for sale/disposition, giving notice and selling/disposing
2) satisfaction of any recorded security interest
3) any amount due from tenant for rent
4) balance, if any, should be paid into court within 30 days of sale and held for 6 months, if not claimed by owner of personal property within period, shall escheat to the county

Question 6

What does the landlord and tenant act apply to?

Answer 6

Regulates and determines rights, obligations and remedies under a rental agreement ofr a dwelling unit in OK

Question 7

What happens when there lacks a rental agreement?

Answer 7

Occupants shall pay a fair rental value for use and occupancy of dwelling unit. If there isn’t a time component, would pay week-to-week (for a roomer) and month-to-month in other cases

Question 8

How much notice needs to be given to terminate an agreement for month-to-month and tenancy at will and if tenancy is less than a month?

Answer 8

• if month-to-month or tenancy at will, would be 30 days at least
• if less than that, would be 7 days

Question 9

What is estate at sufference and what can be recovered?

Answer 9

Tenant remaining in possession of dwelling after expiration of lease. If not in good faith, landlord can recover an amount twice the average monthly rental, computed and prorated on a daily basis, for each period tenant retains posession

Question 10

What is a holdover tenancy?

Answer 10

If landlord consents to tenant staying in dwelling after agreement expiration, a month-to-month tenancy would be considered established

Question 11

How is notice given to terminate if a landlord or tenant cannot be found?

Answer 11

• Service shall be made by delivering notice to any family member of tenant over 12. If can’t find that, will post notice at a conspicuous place on dwelling and a copy mailed to tenant by certified mail
• If landlord cannot be located, notice shall be mailed to him by certified mail

Question 12

What are unenforceable provisions that would not be created in a rental agreement?

Answer 12

1) agree to waive or forego rights or remedies under the act
2) authorizes person to confess judgment on claim arising out of rental agreement
3) agrees to pay attorney fees
4) agrees to exculpation, limitation, or indemnification of any liability arising under laws for damages or injuries to person/property caused by act/omissions of either party
5) agrees to the establishment of a lien except is allowed by act

If lease contains such provision, it would be deemed unenforceable

Question 13

What are the rules regarding flooding notices and rental agreements?

Answer 13

If premises have been flooded within past 5 years and is known to landlord, he must make info prominent in writing as part of the agreement (can be sued if doesn’t)

Question 14

What are the rules regarding damage or security deposits and punishment for misappropriation?

Answer 14

Landlord must keep security deposit in an escrow account in OK w/ federally insured financial institution

Misappropriation of security deposit shall be punishable by term in jail of not more than 6 months and a fine not to exceed twice the misappropriated amount

Question 15

What are policies regarding lease termination and secuirty deposits?

Answer 15

Landlord can apply security deposit to payment of accrued rent or itemized reapairs w/ receipt. Rest of balance shall be returned to tenant within 30 days of termination

If tenant doesn’t make demand of deposit within 6 month, deposit reverts to landlord

Question 16

What are the rules regarding serving notice and authorized landlords/managers?

Answer 16

Lessor shall prominently and in writing identify what person at what address is entitled at accept service/notice. Must close:

1) person(s) authorized to manage premises
2) owner(s) of premises
3) name and address of person authorized to act for and on behalf of owner

Question 17

What rules may a landlord adopt concerning tenant’s use of premises?

Answer 17

1) its purpose to promote convenience, peace, safety, or welfare of tenants
2) reasonably related to purpose for which it is adopted
3) applies to all tenants in premises in a fair manner
4) is explicit in prohibition, direction, or limitation of tenant’s conduct to fairly inform tenant what mut or must not do to comply
5) not for purpose of evading obligations of landlor
6) tenant adopts at time they enter into rental agreement

Question 18

What happens in a demand to vacate that is refused?

Answer 18

Landlord makes written request for occupant to leave dwelling. If fails to do so within a reasonable time, occupant will be punished by a fine not to exceed $500 or confinement in county jail not to exceed 30 days or both

Question 19

During tenancy, a landlord should:

Answer 19

1) except in single-family residence - keep all common areas, ground, facilities clean, safe, and sanitary
2) make all repairs and do whatever is necessary to keep unit and premises in fit and habitable condition
3) maintain good/healthy/working order electrical, plumbing, sanitary, heating, ventilating, air-conditioning, etc.
4) arrange for removal of waste
5) supply running water and reasonable amounts of hot water and heat

Question 20

During tenancy, a tenant should:

Answer 20

1) keep premises occupied clean/safe/sanitary
2) dispose of garbage
3) keep plumbing fixtures sanitary
4) use in safe and non-destructive manner electrical, plumbing, heating, etc.
5) not deliberately or negligently destroy premises (or allow pets to)
6) engage in conduct or all pet to disturb quiet/peace
7) company with rules in title
8) not engage in criminal activity

Question 21

What happens when there’s a change of ownership?

Answer 21

• Owner is relieved of liability under rental agreement and obligations
• Successor is now liable
• Property manager is no longer liable

Question 22

What happens if a landlord fails to deliver possession of unit to the tenant?

Answer 22

Rent abates until possession is delivered and tenant may terminate agreement by giving written notice to landlord

Question 23

What happens if there’s a material noncompliance by the landlord (material affecting health/safety)?

Answer 23

Tenant give written notice and rental agreement will terminate upon a date not less than 30 days after receipt if not remedied within 14 days

If breach is remediable by repairs, with cost less than $100 the tenant can make repairs and expense after expiration of 14 days

Question 24

If landlord fails to provide heath, running water, hot water, electric, gas, or other essential, tenant may give written notice and:

Answer 24

1) immediately terminate agreement
2) procure reasonable amounts of those services and deduct actual/reasonable cost from rent
3) recover damages based on diminution of fair rental value of dwelling unit
4) upon written notice, pocure reasonable substitute housing during noncompliance, in which tenant is excused from paying rent

If noncompliance is uninhabitable or poses threat, tenant may immediately terminate the rental agreement

Question 25

What can tenant do if dwelling is impair and wasn’t caused by tenant?

Answer 25

1) vacate premises and notify landlord within one week of intention to terminate agreement (on date of vacating) - where landlord returns deposits and prepaid/unearned rent
2) if continued occupancy is possible, vacate the unsuable part of dwelling and have rent reduced in proportion to the fair rental value of the dwelling unit

Question 26

If tenant is wrongfull removed, they can:

Answer 26

Recover posession and recover amount not more than twice the average monthly rent, or twice actual damages, whichever is greater

Question 27

What happens when a landlord makes an unlawful entry?

Answer 27

• Tenant can obtain injunctive relief to prevent recurrence of conduct or terminate rental agreement
• Tenant cannot unreasonably withhold consent to the landlord to make updates or repairs
• Land can enter during an emergency, otherwise would need to get one days notice

Question 28

If tenant abandons a dwelling, what can landlord do?

Answer 28

Start new tenancy upon abandonment of dwelling and re-rent. Tenant is liable for remainder of term (or until a replacement was found, whichever was sooner)

Question 29

What is the “New Law” about (related to tenant)?

Answer 29

1) provide landlord with name, address, telephone number of person to contact in tenant’s death
2) sign statement authroizing landlord in the event of tenant’s death to:
a. ) grant person designated access to premises
b) allow designated person to remove tenant’s property
c. ) refund tenant’s security deposit, less deductions

Question 30

In event of tenant’s death who is sole occupant of rental dwelling:

Answer 30

1) landlord may remove all property and store
2) landlord shall turnover property to designated person
3) landlord shall refund tenant’s security deposit, less deductions
4) any person who removes property shall sign inventory of property being removed and sign inventory
5) landlord discard property not removed by designated if:
a) landlord mailed written request by certified mail, return receipt requested, to person designated that property will be removed
b) person failed to remove property by 13 day after postmark date of notice
c) landlord has not been contact by anyone claiming property

Question 31

How many days must a landlord wait to terminate rental agreement for unpaid rent?

Answer 31

5 days

Question 32

How many days does tenant have to repair damages? H

Answer 32

• Promptly as condition requires (if emergency) or 10 days
• landlord can terminate agreement after 15 days, if not remedied within 10
• if tenant fixes and then breaches later, can be evicted on second infraction